Kosmos Energy (NYSE:KOS) vs. Murphy Oil (NYSE:MUR) Critical Survey

Murphy Oil (NYSE:MURGet Free Report) and Kosmos Energy (NYSE:KOSGet Free Report) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Insider & Institutional Ownership

78.3% of Murphy Oil shares are held by institutional investors. Comparatively, 95.3% of Kosmos Energy shares are held by institutional investors. 5.9% of Murphy Oil shares are held by insiders. Comparatively, 2.0% of Kosmos Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Murphy Oil and Kosmos Energy”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Murphy Oil $3.46 billion 1.37 $661.56 million $3.10 10.47
Kosmos Energy $1.70 billion 1.09 $213.52 million $0.44 8.95

Murphy Oil has higher revenue and earnings than Kosmos Energy. Kosmos Energy is trading at a lower price-to-earnings ratio than Murphy Oil, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Murphy Oil and Kosmos Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Murphy Oil 0 9 5 0 2.36
Kosmos Energy 0 2 2 0 2.50

Murphy Oil currently has a consensus price target of $40.92, suggesting a potential upside of 26.01%. Kosmos Energy has a consensus price target of $5.75, suggesting a potential upside of 45.94%. Given Kosmos Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Kosmos Energy is more favorable than Murphy Oil.

Risk & Volatility

Murphy Oil has a beta of 2.21, suggesting that its share price is 121% more volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500.

Profitability

This table compares Murphy Oil and Kosmos Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Murphy Oil 14.78% 9.22% 5.18%
Kosmos Energy 12.21% 31.08% 6.53%

Summary

Murphy Oil beats Kosmos Energy on 8 of the 14 factors compared between the two stocks.

About Murphy Oil

(Get Free Report)

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.

About Kosmos Energy

(Get Free Report)

Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.

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